This type of cover is often forgotten, Family Income Benefit protects a fixed level of income over a set period of time. In the event of death, the chosen level of income will be paid for the remainder of the term of the plan. This protection is typically set to cover you until your youngest dependant turns 21.
Dependent on your circumstances, indexation may be an option for this type of protection to cover the purchasing power, although the benefit can be level. If indexation is initially selected, the premiums and benefit would rise annually, typically by RPI.
This type of insurance is one of the more inexpensive forms and is different from most other types of insurance in that it is intended to pay the benefit, as an income rather than a lump sum. Some policies may offer the option of taking a lump sum.